Lux Island Resorts improves occupancy rates
The island-based luxury hotel chain said its room occupancy rate rose 10 percent in the three months to September as it made a dent in pretax losses by more than Rs 61 million. (Image: Company Website)
Mauritius hotel group Lux Island Resorts saw its losses for the quarter decline as occupancy rates witnessed a stellar rise while borrowings came down.
The island-based luxury hotel chain said its room occupancy rate rose 10 percent in the three months to September as it made a dent in pretax losses by more than Rs 61 million. This quarter’s pretax loss stood at Rs 108.52 million ($3.53 million) against Rs 169.77 million of losses in the year-ago period.
The company, which is present in Maldives and the Réunion Island as well, also saw a major spurt in revenues, which zoomed 22% year-on-year to reach Rs 787 million.
“The economic environment remains uncertain and continues to have a major influence on our European markets, especially France,” the company declared.
“However, we are encouraged by the recent improvement noted in arrivals from the UK market and the increase in arrivals from the emerging markets; in particular China,” it went on to add.
Besides, on the back of increased occupancy rates, EBITDA (Earnings before Interest Tax Depreciation and Amortisation) went up to Rs 49 million compared to a mere Rs 2 million for the same period last year, ahead of target by as much as 21%. Also, operating losses nosedived from Rs 79 million to Rs 31 million while finance costs decreased by Rs 10 million as a result of reduced borrowings and conversion of a significant portion of rupee denominated loans into euro loans in the last financial year.
Lux Island Resorts said its second-quarter performance could improve given that present occupancy rates were ahead of last year. Despite difficult economic and industry conditions, occupancy for the quarter was 67% whilst the group’s ADR (Average Daily Room Rate) during the same period improved by 10%. As a result of the improved Occupancy and ADR, the hospitality major’s RevPAR (Rooms revenue per available room) for the quarter ended September 30 increased by 27% against last year’s.
The Tamassa property, handled by an associate, also improved its results compared to last year, reducing Lux Island Resorts’ share of losses to Rs 4m against Rs 8m last year.
Overall, the company’s loss per share narrowed to 0.90 rupees from 1.42 rupees.
The hospitality major posted its results on the Stock Exchange of Mauritius after the market closed. Its shares fell 0.26 percent to Rs 37.80 rupees on the day.
Source: Company Website
Lux Island Resorts
Founded in 1987, LUX* Resorts (known as Naïade Resorts Ltd till end 2011) is a hotel group with properties in Mauritius, the Maldives and Réunion Island. The company was listed in November 2005 and had more than 2,810 shareholders as of 31 December 2009.
LUX* Resorts is a collection of premium hotels in the Indian Ocean offering guests the opportunity to celebrate island life. The five resorts in the LUX* portfolio are LUX* Belle Mare, Mauritius (formerly Beau Rivage), LUX* Le Morne, Mauritius (formerly Les Pavillons), LUX* Grand Gaube, Mauritius (formerly Legends), LUX* Maldives (formerly Diva) and LUX* Ile de la Réunion (formerly Grand Hotel du Lagon).
The remaining properties previously operated by Naïade Resorts Ltd will be part of the Produced by LUX* Resorts portfolio. These resorts will continue to be known as Tamassa, Bel Ombre, Mauritius; Merville Beach, Grand Baie, Mauritius and Hôtel Le Récif, Ile de la Réunion, as well Ile des Deux Cocos, Mauritius, a private paradise island.
Source: Company Website